The leaders of the renowned climate network Science Based Targets initiative, SBTi, has announced plans for companies to be allowed to buy CO2 reductions via climate credits and certificates. This is causing great concern among SBTi’s employees and experts, who fear that it will result in large-scale greenwashing, according to Danish business media Jyllands-Posten Erhverv.

Ørsted and Grundfos have announced that they will not use CO2 certificates to achieve the goal of being climate neutral throughout the value chain. The companies believe that carbon credits should not replace concrete action and transition.

For several years, carbon credits have been a tool for companies to reduce their climate impact, where they achieve CO2 reductions elsewhere than in their own value chain, for example by planting trees instead of replacing fossil energy sources. This makes it much easier and cheaper for companies to reach their climate goals. According to the newspaper, experts believe that there is a need for real change rather than buying into a green conscience, as there are several examples where the claimed reductions have never taken place.

Novo Nordisk, which aims to become CO2-neutral throughout the value chain by 2045, is not opposed to the use of certificates, as long as whether they actually contribute to creating more renewable energy in the market is thoroughly investigated, the company said in an email to Finans.

Following the criticism, SBTi has announced that the use of credits is being considered and that a new announcement will be made before summer.

(Translated using DeepL with additional editing by Catherine Brett)